Rakesh Jhunjhunwala's Next Stock To Buy
The money raised is likely to be used for taking a majority stake in Advani Hotel. The company needs nearly Rs 100 crore for upping its stake to over 51%, and to make 20% open offer.
Delta Corp owns 35% stake in Advani Hotels. Advani Hotels operates Ramada - a 5 star in Goa. Market buzz is that the land sale money of Rs 250 crore could be used by the company to take majority control in Advani Hotels.
Delta Corp operates in four business segments i.e. entertainment and gaming, real estate, hospitality and aviation, plans to invest part of its land sale money into its gaming and hospitality business.
Delta Corp's FY10 consolidated sales are at Rs 132.5 crore, PAT is Rs 12.1 crore and EPS was Rs 0.71. In FY10, revenues from hospitality and gaming are at Rs 65.9 crore versus Rs 21.8 crore.
As per technical analyst, Ashwini Gujral, Delta corp could hit upto Rs. 90 levels in short term, so stock traders who would like to trade the stock for quick gains may buy stocks of Delta for this target. Long term investors, after confirming the news that Rakesh Jhunjhunwala is really investing in this stock, may wait for correction and consider buying stocks for long term. If the news is false, stock may correct significantly.
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